An employee’s earned ownership of a retirement benefit plan over time

A trade association, or industry association, is an organization founded and funded by businesses within a specific sector to promote collective interests, establish best practices, and represent the industry to policymakers.

A financial metric that represents the difference between a company’s current assets and its current liabilities. NWC is defined as accounts receivable plus inventory minus accounts payable and accrued liabilities. NWC is often included in the purchase price of a business.

The inventory turnover ratio gauges a company's inventory management efficiency by showing how often it sells and replenishes inventory annually. It's calculated by dividing the cost of goods sold by the average inventory value, providing insights into operational efficiency.

A SEAL is a unique financing model for early-stage software and software-enabled companies. SEALs do not involve equity ownership, fixed repayment schedules, or personal guarantees. Instead, investors provide upfront capital in exchange for a percentage of founder earnings

In the event of an acquisition, it is typical for acquired assets to be stepped-up to their FMV. The resultant increase in depreciation and amortization has the potential to reduce taxes for the acquirer, depending on how the business combination has been structured.

The first certification for small business exit planners, specifically tailored to the needs of employee ownership sales. Created/certified by Project Equity.

Refers to any EO transaction completed without the use of debt, such as nonleveraged ESOPs in which the sponsoring company contributes cash to the ESOP, which is used by the ESOP to purchase the employer's stock, or the employer contributes its stock directly to the ESOP

The primary responsibility of ESOP fiduciaries is to run the plan solely in the interest of participants and beneficiaries and for the exclusive purpose of providing benefits and paying plan expenses. Fiduciaries must act prudently.

CDFI Fund is an independent agency administered by the U.S. Department of Treasury.

the aggregate market value of a company represented in a dollar amount

Also called "worker owner," or "participant" (depending on the EO context), an employee owner is an owning participant in an employee owned business.

A C corporation based ESOP

A PEO is a company which offers employment as a service, with the PEO typically becoming "employer of record" for one or more of a company's employees for the sake of shared services such as payroll, benefits, etc.

A capitalization table, or cap table, details a company's equity structure—shareholders, types of equity (common, preferred, options, warrants), and their ownership percentages. It's vital for companies to track changes through funding rounds and shareholders shifts.

A convertible note is a temporary debt tool enabling investors to convert their loan into company equity. It postpones the valuation of the company until later rounds, like Series A, when more information is accessible.

Making a plan in advance, naming the people or organizations you want to receive the things you own after you die, and taking steps now to make carrying out your plan as easy as possible later

Typically refers to companies with an enterprise value between $250 million and $1 billion

A roll-up merger is when a private equity firm acquires several companies in the same industry and merges them to achieve economies of scale. By creating a larger, more efficient entity, these mergers aim to boost market presence, cut costs, and potentially raise profitability.

Seller notes are loans from the selling owner to be paid back by the business over time, and which offer some tax advantages, and may pay higher interest than a traditional loan.

QV allows participants to allocate credits among choices according to their preferences, with votes calculated quadratically. This means that more passionate preferences are weighted higher, which can protect minority interests and balance power dynamics within communities.

Pertaining to unique EO considerations for businesses in Iowa such as tax or other incentives

An income statement, also known as a profit and loss statement, is a crucial financial document that summarizes a company's financial performance over a specific period. It is part of the trio of essential financial statements, alongside the balance sheet and cash flow statement.

A grantor, or grant-making organization, is an entity—such as a foundation, government agency, or corporation—that provides financial awards (grants) to individuals, organizations, or projects without expectation of repayment.

Fractional ownership allows investors to purchase a share of an asset rather than the entire cost, making it accessible for those with limited capital or seeking diversification.

Cash flow financing is a type of business financing where a loan is secured by a company's anticipated cash flows. Unlike traditional loans that require physical assets as collateral, cash flow loans utilize the cash generated from sales to repay the loan.

Blue sky, also known as goodwill, is the excess purchase price over the market value of a company's tangible assets as recorded on the balance sheet.

A susu is an informal savings club from West African tradition, common in African and Caribbean communities. Members contribute fixed amounts regularly to a communal pot. Each cycle, the total sum is paid out to one member until all have received their share, without interest

Debt capacity is a measure of a company's ability to borrow and repay debt under agreed terms. Companies use debt for growth and asset acquisition, as high debt causes financial strain. Lenders evaluate debt capacity through financial metrics like balance sheet strength

Mezzanine debt is the middle layer of capital that sits subordinated to senior debt and above equity on the balance sheet. This type of capital is usually not secured by assets and is lent based on a company's ability to repay with cash flows.